Kennedy Wilson Launches $1.5 Billion Multifamily Platform With Global Institutional Investor

Rhea-AI Summary

Kennedy Wilson (NYSE:KW) has established a joint venture with a global institutional investor to acquire and manage multifamily communities in the Western U.S., launching with an $800 million portfolio. Kennedy Wilson sold a 49% interest in nine properties, retaining a 51% stake in the venture, which aims for $700 million in further acquisitions. The transaction generated $254 million in proceeds, primarily to be reinvested into new acquisitions. Kennedy Wilson's multifamily portfolio has grown from 30,000 to approximately 32,000 units, with expectations for further expansion.

Positive

• Establishment of a joint venture with a global investor, enhancing growth potential.
• Generated $254 million in proceeds from the sale of assets, which can be reinvested.
• Expansion of multifamily portfolio from 30,000 to approximately 32,000 units.

Negative

• None.

Global real estate investment company Kennedy Wilson (NYSE:KW) has entered into a new joint venture with a global institutional investor to acquire and manage core-plus multifamily communities in the Western U.S.

The platform was seeded with an $800 million portfolio, including nine multifamily properties located in the Western U.S. that were previously wholly owned by Kennedy Wilson. As part of the transaction, Kennedy Wilson sold a 49% interest in these wholly owned assets to its partner. Kennedy Wilson will continue to have a 51% ownership stake in the new joint venture that will target approximately $700 million in additional core-plus acquisition opportunities.

The creation of the new platform and the sale of the ownership stake in the multifamily assets generated approximately $254 million in proceeds for Kennedy Wilson, which includes $92 million of proceeds from refinancing certain assets within the seed portfolio prior to the sale. The majority of these proceeds are expected to be reinvested into new wholly owned acquisitions.

“We are honored to form a partnership with a prestigious, global investor to build our multifamily presence in targeted markets that offer residents relative affordability and a high quality of life,” said William McMorrow, Kennedy Wilson Chairman and CEO. “We have a long track record of identifying multifamily investment opportunities across the Western U.S. and we are grateful to have a strategic partner that will enable us to expedite the growth of our multifamily business.”

The launch of the platform, along with recently announced acquisitions, has contributed to a dramatic increase in recent transaction activity at Kennedy Wilson as well as an expansion of its multifamily portfolio, which has grown from 30,000 units at year-end 2020 to approximately 32,000 units expected as of June 30, 2021. Kennedy Wilson currently expects further growth in its multifamily unit count as the Company redeploys the proceeds from the seed portfolio sale proceeds.

About Kennedy Wilson

Kennedy Wilson (NYSE:KW) is a leading global real estate investment company. We own, operate, and invest in real estate through our balance sheet and through our investment management platform. We focus on multifamily and office properties located in the Western U.S., UK, and Ireland. For further information on Kennedy Wilson, please visit: www.kennedywilson.com.

Special Note Regarding Forward-Looking Statements

Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are estimates that reflect our management’s current expectations are based on our current estimates, expectations, forecasts, projections and assumptions that may prove to be inaccurate and involve known and unknown risks. Accordingly, our actual results, performance or achievement, or industry results, may differ materially and adversely from the results, performance or achievement, or industry results, expressed or implied by these forward-looking statements, including for reasons that are beyond our control. Some of the forward-looking statements may be identified by words like “believes”, “expects”, “anticipates”, “estimates”, “plans”, “intends”, “projects”, “indicates”, “could”, “may” and similar expressions. For example, we may not be able to maintain our current acquisition or disposition pace or identify future properties to acquire on terms we consider attractive, and our current property portfolio may not perform as expected. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. We assume no duty to update the forward-looking statements, except as may be required by law.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210628005202/en/

FAQ

What recent partnership did Kennedy Wilson (KW) announce?

Kennedy Wilson announced a joint venture with a global institutional investor for acquiring and managing multifamily communities in the Western U.S.

How much was the portfolio seeded in Kennedy Wilson's new joint venture?

The joint venture was seeded with an $800 million portfolio, including nine multifamily properties.

What percentage of the ownership stake in the properties did Kennedy Wilson retain?

Kennedy Wilson retained a 51% ownership stake in the joint venture.

What financial impact did the transaction have on Kennedy Wilson?

The transaction generated approximately $254 million in proceeds for Kennedy Wilson.

How many multifamily units does Kennedy Wilson expect as of June 30, 2021?

Kennedy Wilson expects to have approximately 32,000 multifamily units by June 30, 2021.